Trade-Ideas LLC identified Media General ( MEG) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Media General as such a stock due to the following factors:

  • MEG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.7 million.
  • MEG has traded 283,878 shares today.
  • MEG is trading at 3.35 times the normal volume for the stock at this time of day.
  • MEG is trading at a new low 3.02% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on MEG:

Media General, Inc. owns and operates television stations in the United States. MEG has a PE ratio of 26. Currently there are 3 analysts that rate Media General a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Media General has been 969,900 shares per day over the past 30 days. Media General has a market cap of $1.3 billion and is part of the services sector and media industry. The stock has a beta of 2.34 and a short float of 14.3% with 6.96 days to cover. Shares are down 36.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Media General as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income, generally high debt management risk and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 28.47%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 87.50% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, MEG is still more expensive than most of the other companies in its industry.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 75.9% when compared to the same quarter one year ago, falling from $6.79 million to $1.64 million.
  • Currently the debt-to-equity ratio of 1.55 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Regardless of the company's weak debt-to-equity ratio, MEG has managed to keep a strong quick ratio of 1.86, which demonstrates the ability to cover short-term cash needs.
  • MEDIA GENERAL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, MEDIA GENERAL INC turned its bottom line around by earning $0.58 versus -$0.10 in the prior year. For the next year, the market is expecting a contraction of 58.6% in earnings ($0.24 versus $0.58).
  • The gross profit margin for MEDIA GENERAL INC is rather high; currently it is at 58.14%. Regardless of MEG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MEG's net profit margin of 0.51% is significantly lower than the industry average.

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